Saturday, March 29, 2014

You and your business partner have been running your business as
general partnership for the past several years. You have been reading
about limited liability companies (LLCs) and have decided that your
business should really be operated as an LLC. Is it too late? Can you
still convert your business from a general partnership to an LLC? Yes,
you can!

Why would a business want convert to a limited liability
company from a partnership? The reason that a business would want to
convert from a general partnership to an LLC is to allow the partners to
shield themselves personal liability for obligations of the business.
Every partner in a general partnership is liability for all of the debts
of the business. A member of an LLC, on the other hand is can generally
only lose his contribution to the LLC, nothing more. He is not
responsible for the debts of the LLC.

The limitation typically
only applies to liabilities arising after the conversion. It is unlikely
that a general partner will be released from personal liability to the
partnership's creditors for the business's debts existing before the
conversion. A member will avoid personal liability for debts incurred by
the LLC but will remain personally liable for debts of the general
partnership which are transferred to and assumed by the LLC in the
conversion.

The procedures for converting a general partnership
into an LLC differs from state to state. Originally, most state laws
contained no provision allowing one type of business entity to change
into an LLC. At that time, if you had a partnership, you had to first
dissolve the partnership and distribute its properties and liabilities
to all of the partners. At that point, the partners would contribute
those assets and liabilities to a newly-formed LLC and become members in
the new LLC.

Today, most states have statutory provisions that
allow a partnership to be converted into an LLC in one simple step. For
example, in Illinois, once the partners approve the conversion, a
Statement of Conversion is filed along with Articles of Organization for
the new LLC. It is as simple as that.
The conversion is also
simple from a tax standpoint. In several private letter rulings the IRS
has addressed the conversion of a general partnership into an LLC. The
rulings have clarified that neither the partners nor the partnership
recognize any gain or loss on the conversion. Also, the partnership
continues to exist uninterrupted for tax purposes and, for computing
capital gain if he later disposes of his LLC membership interest, the
length of time that the partner owned his partnership interest carries
over to his LLC interest.

An LLC is by far the most popular choice
for new businesses being formed today. If you chose to start your
business as a general partnership, the good news is that it is not too
late to make the change!

David K. Staub is a business attorney
who writes and lectures frequently on various business, legal and tax
topics. He is the author of the Limited Liability Company Center, a free
resource of information on how to organize an LLC.

Thursday, March 27, 2014

Rene goes over how a divorce does not always need to involve a full legal team. He explains the process of how By The People can help file the paperwork necessary for the courts. See more at http://www.bythepeopleca.com

Monday, March 24, 2014

In some states, according to estate law, executors do not have to notify beneficiaries of wills. Find out when an executor must notify a beneficiary from an estate planning and probate lawyer in this free video on estate law.

Sunday, March 23, 2014

Most are unaware that a Limited Liability Company may be taxed in
four different ways: disregarded, partnership and S or C corporation.

Let
me share with you 10 LLC secrets that will not only keep you out of tax
trouble but help you better avoid pitfalls down the road.

1. Can
an IRA invest in a Limited Liability Company? There are a couple of
major issues with this strategy that could create problems with the IRS.
First, if you are the manager of the LLC and you are on the LLC
checking account that has IRA funds, that means you have "check book
control". There are prohibited transactions in where you can not use
that money, but more importantly if the signer on the account uses the
LLC money for personal use that is a big problem and could create
serious IRS issues. The second issue centers around who can be the
manager of the Limited Liability Company. Can it be you? Is that
self-dealing? That means you are running the same entity that is owned
by the IRA and that is an issue with the IRS. It appears that having a
separate self directed IRA only to own the real estate may be a better
approach. You do want to isolate the safe and risk investments.

2.
What are the advantages of a Limited Liability Company over an S
corporation? When you capitalize an S corporation, code section 351
allows shareholders to transfer appreciated assets to the corporation
taxfree. But, the shareholder who is transferring the asset MUST own 80%
of the S corporation.

3. When should an entity convert to an LLC?
Many times if you formed a corporation it may be less steps and cheaper
to form a new LLC. Many statutes authorize the merger of an LLC with
another entity like a partnership or corporation. Some state LLC acts
provide that an LLC may NOT merge with another entity unless there is
unanimous consent of the members for such merger.

4. What are the
consequences if an LLC is "doing business" in a state but is not
registered as a foreign LLC? Typically, the entity will need to foreign
register where nexus (or a business presence) is located. Even an
internet business can make the argument you can be based from anywhere,
but if you are working in your home office in California with a Nevada
LLC, you have nexus in California. Besides how do you claim a home
office deduction when the LLC is not in your state doing business?

5.
When do LLC members have limited liability? No member of the Limited
Liability Company is personally liable for the LLC's debts and
obligations (as opposed to by individual action, such as by personal
guarantee or commission of a tort). A member of the LLC has personal
liability if a creditor of the LLC has the right to require a member to
satisfy a debt of the LLC to the extent that the Limited Liability
Company assets are insufficient to satisfy the LLC's debt to the
creditor.

6. How will a single member LLC, taxed as a disregarded
entity for federal income tax purposes be treated for state tax
purposes? Where state laws follow federal laws, a single member LLC
would be disregarded for state income tax purposes when disregarded for
federal income tax purposes. At least two states have indicated that a
single member Limited Liability Company would be taxed as a partnership
for state tax purposes, New York and Wisconsin.

7. How much
capital must be contributed to an LLC? Except when required by state
law, there is no minimum amount that must be contributed to an LLC in
exchange for an interest in the LLC.

8. What type of reporting is
required if real estate is contributed to an LLC in exchange for a
membership interest? According to the Treasury Regulations Section
1.6045-4(b)(1), a transfer of real estate to a partnership must be
reported, even though it is tax-free under Code Section 721 (a).

9.
When can a Limited Liability Company make distributions to members?
LLCs generally can distribute cash or property, whether income or
capital, to the members as provided in the Operating Agreement, or
otherwise agreed by the members.

10. What is a series Limited
Liability Company and what issues does it bring? The series LLC is
similar to a corporate controlled group with several operating
corporations, but there is only one legal entity. The benefit is that
you could put 10 rental properties into one series LLC and provide
protection of each property from the other because each is owned by one
cell.

Scott Letourneau is the founder and CEO of Nevada Corporate
Planners, Inc. Since 1997 NCP has helped thousands of entrepreneurs in
all 50 states establish the correct foundation & keep the IRS off
their back as they incorporate with confidence and get their business
off to a fast start to profits. Go to http://www.nvinc.com for free training on what entity and state is best for your business.

Saturday, March 22, 2014

Setting up an LLC and other states has become a popular option
for many small business owners because of the many benefits it offers. A
limited liability company puts together the advantages of a sole
proprietorship, a partnership, and a corporation all in one business
entity. This means compete control, tax benefits, and limited liability.
The interest in LLCs continues to grow as more and more business owners
are able to realize its advantages over other business types.

Before
starting an LLC, there are some considerations that should be kept in
mind. Taking note of these considerations will ensure that the
processing of its registration with the appropriate government agencies
will go faster and smoother. When the paperwork is completed properly,
there will be no questions as to the LLC's legality.

First, the
members filing for LLC should decide on the name of the business. This
should meet the standards in LLC names set by the state government. To
know the availability and aptness of the name, the business name
database can be utilized for verification. Also, the name for an LLC can
be reserved for four months by filing an application as well.

The
next step is submitting the LLC's Articles of Organization. These
articles should include all the necessary information about the LLC such
as the name and address of LLC, its registered agent, and its duration.
Also, how the LLC will be managed and who will manage the LLC should be
stated in the Articles of Organization. Under the law, these are all
filed with the office of the Secretary of State through mail.

The
Operating Agreement should be processed after the filing of the Articles
of Organization. Though this is not required by the state's government,
it is still highly advisable. This is essential to define each member's
responsibilities and liabilities. With Operating Agreement, the members
can be protected from being personally liable if ever the business
becomes bankrupt. Aside from the statement of responsibilities and
liabilities, other information can be included as well. This includes
the business nature, concept, and mission statement.

Lastly,
business permits and licenses should be acquired. These vary depending
on state laws. The business licenses that need to be obtained depend on
the nature of the business and its location. Aside from that, the LLC
businesses are all required to submit annual reports. This is also
submitted to the Secretary of State on the designated date and can be
done through mail or online filing. Knowing about all these requirements
will help business owners keep track of their filing schedules to
ensure that they are always compliant with all the government's
documentation and reportorial requirements.

Wednesday, March 19, 2014

A power of attorney is a legal instrument used to give someone the authority to act on your behalf. The person who signs the power of attorney is called the principle. The person who is given authority to do something is called the agent or the "attorney in fact." With the power of attorney, you can give someone the power to make certain financial, legal, or other decisions on your behalf.

Tuesday, March 18, 2014

When you hear "uncontested divorce", also known as no fault
divorce in California, you probably think of a couple who amicably and
in a friendly manner decide to call it quits. While this is surely the
case in some situations, choosing to go the uncontested divorce route
may be a financial decision rather than an emotional one. Just like any
divorce, there is the chance that an uncontested will see unpleasantness
and bitterness to some degree.

So why would you choose this path
if you are unhappy with your former partner? Well, for one an
uncontested divorce is much cheaper than a contested divorce in most
cases. The couple could even file for divorce without the assistance of
lawyers, although at the very least speaking with an attorney is often
helpful and important in protecting one's rights.

What's more, it
allows the couple to end their marriage quickly and with as little
animosity as possible, even if the former couple isn't walking away from
the marriage with the best of feelings towards one another. You
probably will not agree on every single aspect of the divorce, but after
a little negotiating, compromising and talking through the issues,
couples are often able to reach an agreement without fighting each other
in court.

Getting back to the money-saving benefit of an
uncontested divorce, the extra cash that may otherwise go to a divorce
attorney can be used to rebuild your life. You won't have a partner with
whom you can split your expenses, including rent, car payments,
utilities, etc., and if you have kids you'll be able to pamper them a
little bit as they deal with the divorce.

There are some cases in
which a no fault divorce may not be right. If abuse exists in the
relationship, negotiating may be difficult for the victim of abuse, as
intimidation and possibly fear will put create an uneven playing field.
If either you or your spouse decides that you want to walk away with
most of your assets, or if you are not on speaking terms with your
spouse, an uncontested divorce may not be the best of choices.

In the end, though, many choose an uncontested divorce because of the money, headaches and hassle that it saves them.

Monday, March 17, 2014

A Living will, quite often you must have come across this term.
But how many of us know its usage, its importance, advantages and
disadvantages? There are many articles written on this topic. One can go
and find out information from various sources. This article mostly
features the important factors of living will, the basic idea behind its
making as well as its advantages and disadvantages.

As the name
says "living will", from its name it suggests that it has got something
to do with legal document. Yes, a living-will is a document in which an
individual writes about his/her medical wishes and desires. This
document is converted into a legal document and is used during the time
when an individual will no longer be able to take any decision due to
incapacity or illness. In other words, this term is explained as advance
health care directive, advance directives or advance decision.

An
individual who has made such kind of advance directives, appoints a
person so that he can take any decisions on their behalf. This kind of
will is an oldest form of "leaving instructions for medical treatment".
In today's world, concept of making such kind medical wish or desire on a
legal document is quite encouraged. This legal document is benefited
while giving comprehensive guidance regarding an individual's care.

Writing
a living will has to be very specific. Therefore, in some cases it
restricts the use of various kinds of burdensome treatment. Individual
can also express their wishes on how his food and water will be
supplied, either via medical devices or tubes. An individual can also be
more specific regarding the service that he expects with respect to
pain relief or analgesia, antibiotics, feeding, usage of ventilators or
antibiotics.

Disadvantages of advance directives:

•
Main disadvantage of an advance decision is; there is no statute in New
York governing such kind of living-wills. Advance will is valid as long
as it states specific and convincing evidence.
• Drafting out an
advance will is not an easy job. It requires specific instructions
regarding all possible events in future. It is impossible for one to
imagine what an individual would really want in the situations.
• In case an individual fails to make his advance will specific and clear, then there could be refusal of treatment.

Advantages of advance directives:

• The main advantage of living will is that it respects the human rights of a patient.
• Drafting an advance directive creates full discussion on medical treatment and services.
• It helps the medical professionals to decide what the patient wants.
• A patient's family or relatives will be free from taking difficult decisions.

Once
you decide to create such kind of legal document, you should not get
confused in between an advance directives and a trust. Role of a trust
is to handle the property/assets of an individual after his/her death.
Trust has got nothing to do with the medical care decisions. In response
to increasing improvement in the field of medicine, concept of an
advance directive was implemented.

Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks.Call Robert Eldridge directly at 800-643-7544.Robert
Eldridge holds over a decade of experience as a multiline agent in
multiple states and currently serves on the membership council of the
National Association of Insurance and Financial Advisors

Sunday, March 16, 2014

Few if anyone would disagree with the ethical premise that a
society should do everything possible to make sick people well. But this
ethos seems to have gotten confused with something entirely different:
the practice of keeping dying people alive as long as possible without
concern for their discomfort, loss of dignity, and financial ruin. When
you look at the statistics surrounding the issue of end-of-life
expenditures they are truly incredible. In 2008 Medicare alone paid out
$50 billion to physicians and medical centers to cover costs associated
with the last two months of the lives of dying individuals. To put this
into perspective, this was more than the annual budget that was allotted
to the Department of Education at that time.

It is estimated that
between 18-20% of people who pass away each year do so in the intensive
care units of hospitals, and the cost for each day in ICU can reach as
much as $10,000. This is in spite of the fact that most people polled do
not want to be kept alive through aggressive and intrusive medical
procedures when there is no hope for recovery. 75% of American die in
hospitals or nursing homes, and in 2010 the average cost for a year in a
private room in a nursing home was around $83,000. More people are
living longer these days as we all know, these costs are rising all the
time, and we are already faced with a federal budget deficit that
exceeds $1 trillion.

How you feel about being kept alive through
feeding tubes and life support systems at the end of your life is a
personal decision. You can state your wishes concerning the types of
medical procedures you approve and disapprove of through the execution
of a living will, and you can add a health care proxy to name someone to
make decisions for you in the event of your incapacitation. It may be a
good idea to come to terms with the line that exists between medical
issues and end-of-life issues and decide how you would like to proceed
from a fully informed and personally empowered perspective.

Alan L. Augulis is a leading provider of expert estate planning guidance in Warren, NJ. For more information on advance directives and other estate planning services, visit our website.

Saturday, March 15, 2014

Are you aware that you could become mentally disabled at any time
during life? If you do become disabled without a proper plan in place, a
judge will create a guardianship. A guardianship occurs when a court of
law decides you are mentally incapacitated and names a person to make
legal decisions for you.

Disadvantages of a Guardianship

If
a court of law appoints someone to make court-supervised decisions for
you, you will have no say in which person that may be. What if the
person chosen is not someone you would wish to control your assets and
medical care? Your guardian will most likely be a family member, but
wouldn't it be nice if you had a say in the decision and could choose
the loved one you feel would do the best job?

Three Legal Documents to Use

The
best way to avoid a guardianship is to have a disability plan in place
to cover your medical and financial needs. An Advanced Medical Directive
or Medical Power of Attorney allow you to name a person that you feel
can make sound medical decisions for you.

A Durable Financial
Power of Attorney (POA) allows you to plan for your financial needs. You
can use this document even when you are not incapacitated. For example,
a durable power of attorney may be used by your spouse to sign on your
behalf anytime you are unavailable. If you wish to retain full control
of your financial decisions, you can use a "springing" power of attorney
instead. This type of POA will only allow your chosen financial agent
to act if you become mentally disabled.

Another popular disability
planning document is a Revocable Living Trust, which is also used for
estate planning. With a Trust, you retain full control of your
belongings while you are healthy and of sound mind. When you create your
Trust agreement, you will name a successor trustee to take over if you
become mentally disabled or die. While you are disabled, your successor
trustee will manage your assets. When you die he or she will use your
Trust to settle your estate. If you choose to use a Trust for disability
planning, check with your attorney to ensure that it contains the
proper wording to allow for a medical agent to step in if needed.

Augulis Law Firm is a leading provider of expert estate planning guidance in Warren, NJ. For more information on guardianship and other estate planning services, visit our website.

Friday, March 14, 2014

Making plans for retirement is clearly one of the highlights of
your life. From the time you get out of college and enter the workforce
most of your time is accounted for, and over those years there are
invariably going to be many experiences that make their way onto your
"to-do" list. The day that you retire is the day that you start to check
things off that list, and your life experience in enriched with every
mark.

We often talk about the fact that one of the challenges that
is inherently part of any type of long-term planning is the fact that
you can't predict the future with any degree of certainty. This is true
of financial markets, laws, our own health and that of our loved ones.
All of these things impact retirement planning, but there is another
factor that can be difficult to fully digest.

Your mental capacity
may not be the same as your retirement years pass. When you are
planning for retirement it is very important to be realistic and keep
this in mind. What happens if you need long-term care? What if you never
made your medical preferences known via the execution of advance health
care directives? You don't want to start considering these matters for
the first time when you are in the latter stages of your life.

It
may be a good idea to plan for your twilight years simultaneous to
making plans for an active retirement both emotionally and financially.
Bringing the issues of long-term care and possible incapacitation out in
the open with your family long before they are directly relevant is
also something to consider. Successful people generally confront reality
and stay ahead of the curve. If you follow the same path that brought
you success throughout your life you will invariably age just as
successfully.

Alan L. Augulis is a leading provider of expert estate planning guidance in Warren, NJ. For more information on retirement plan and other estate planning services, visit our website.

Wednesday, March 12, 2014

The simplest way to ensure that your
funds, property and personal effects will be distributed after your
death according to your wishes is to prepare a will. A will is a legal
document designating the transfer of your property and assets after you
die. Usually, wills can be written by any person over the age of 18 who
is mentally capable, commonly stated as "being of sound mind and body."

WHO NEEDS A WILL?

Although
wills are simple to create, about half of all Americans die without one
(or Intestate). Without a will to indicate your wishes, the court
steps in and distributes your property according to the laws of your
state. Wills are not just for the rich; the amount of property you have
is irrelevant. A will ensures that what assets you do have will be given
to family members or other beneficiaries you designate. If you have no
apparent heirs and die without a will, it's even possible the state may
claim your estate.

Having a will is especially important if you
have young children because it gives you the opportunity to designate a
guardian for them in the event of your death. Without a will, the court
will appoint a guardian for your children who may be someone you do not
even know.

WHAT ARE THE ELEMENTS OF A WILL?

What you generally need to make a will:

1) Your name and place of residence;

2) Names and addresses of spouse, children and other beneficiaries, such as charities or friends;

3) Alternate beneficiaries, in the event a beneficiary dies before you do;

4) Name and address of an Executor/ Executrix to manage your estate;

5) Name and address of an alternative Executor/Executrix, in the event your first choice is unable or unwilling to act;

6) Name and address of a guardian for your minor children;

7) Name and address of an alternative guardian, in the event your first choice is unable or unwilling to act;

8) The age you wish your minor children to have control of their inheritance;

9) Any burial requests you may have (cremation, where you want to be buried, etc.);

10) Your signature;

11) Two Witnesses' signatures; and

12) Notarization.

Two
of the most important items included in your will are naming a guardian
for minor children and naming an Executor/ Executrix.

WHAT IS A GUARDIAN?

In
most cases, a surviving parent assumes the role of sole guardian.
However, it's important to name a guardian for minor children in your
will in case neither you nor your spouse is able and willing to act. The
guardian you choose should be over 18 and willing to assume the
responsibility. Talk to the person ahead of time about what you are
asking. You can name a couple as co-guardians, but that may not be
advisable. It's always possible the guardians may choose to go their
separate ways at some later date, and, if so, a custody battle could
ensue. If you do not name a guardian to care for your children, a judge
will appoint one, and it may not be someone you would have chosen.

WHAT IS A EXECUTOR/EXECUTRIX AND WHAT DO THEY DO?

An
Executor/Executrix is the person who oversees the distribution of your
assets in accordance with your will. Most people choose their spouse, an
adult child, a relative, or a friend to fulfill this duty.

If no
Executor/Executrix is named in a will, a Probate Judge will appoint one.
Probate refers to the legal procedure for the orderly distribution of
property in a person's estate. The Executor/Executrix files the will in
probate court, where a Judge decides if the will is valid. If it is
found to be valid, assets are distributed according to the will. If the
will is found to be invalid, assets are distributed in accordance with
state laws.

Responsibilities usually undertaken by an Executor/Executrix include:

--Paying valid creditors;

--Paying taxes;

--Notifying Social Security and other agencies and companies of your death;

--Canceling credit cards, magazine subscriptions, etc.; and

--Distributing assets according to the will.

WHAT ABOUT UPDATING MY WILL?

You'll
probably need to update your will several times during the course of
your life. For example, a change in marital status, the birth of a child
or a move to a new state should all prompt a review of your will. You
can update your will by amending it by way of a Codicil or by drawing up
a new one. Generally, people choose to issue a new will that supersedes
the old document. Be sure to destroy the old will after you sign a new
one.

WHAT ABOUT ESTATE TAXES?

The property included in your will may be subject to taxation. In planning your will, take into account the following:

---Federal
estate taxes will generally be due if the net taxable estate is worth
more than $1,000,000. This amount is scheduled to gradually increase
from $1,000,000 in 2002/2003 to $3,500,000 in 2009 so that it will
eventually shield $3,500,000 in gift or estate transfers from tax per
taxpayer. Estates in excess of the exempt amount can be taxed at a rate
from 37% to 50% (the top percentage is scheduled to gradually decrease
to 45% in 2009). Also, note that these estate tax changes are scheduled
to be repealed in 2010. If not extended, the tax law will revert to the
estate and gift tax provisions in affect in 2001. Consult a tax or
financial professional to determine a plan that is right for you and
your family.

---State death or inheritance taxes

---Federal income taxes

---State income taxes

You
may be able to minimize your estate tax by establishing a trust or
giving gifts during your lifetime. You can also cover the cost of estate
taxes by purchasing a life insurance policy intended to pay taxes. Talk
to your life insurance agent to find out more about how this works.

WHERE SHOULD I KEEP MY WILL?

Once
your will is written, store it in a safe place that is accessible to
others after your death. I suggest that you keep it in a fire proof box
that you can purchase at any office supply store. I do not suggest
that you keep your will in a safe deposit box because many states will
seal your safe deposit box upon your death. Make sure a close friend or
relative knows where to find your will.

WHAT IS A LIVING WILL?

A
living will is not a part of your will. It is a separate document that
lets your family members know what type of care you do or don't want to
receive should you become terminally ill or permanently unconscious. It
becomes effective only when you cannot express your wishes yourself.
Discuss your wishes as reflected in your living will with family
members, and be sure all your doctors have a signed copy.

WHAT IS A POWER OF ATTORNEY FOR HEALTH CARE (HEALTH CARE PROXY)?

A
power of attorney for health care (health care proxy) is not a part of
your will. It is a separate document that authorizes someone you name to
act in accordance with your medical intentions. It becomes effective
only when you cannot express your wishes yourself. You should make sure
that all your doctors have a signed copy.

WHAT IS A FINANCIAL DURABLE POWER OF ATTORNEY?

A
financial durable power of attorney is not a part of your will. It is a
separate document that authorizes someone you name to act in accordance
with your financial intentions. It becomes effective only when you
cannot express your wishes yourself. You should make sure that all your
financial professionals (stockbrokers, accountants, financial planners)
and banks have a signed copy.

PLAN AHEAD

The end of your
life is something you probably don't want to dwell on, but thinking
about what will happen to your loved ones and your assets and personal
possessions is important. Making sure you've done all you can to make
their lives easier will give you peace of mind. And once your will is
drafted, you won't have to think about it again unless something
significant in your life changes.

Sheri R. Abrams is an Attorney in Fairfax, VA. Her practice is
limited to the areas of Social Security Disability Law and the
preparation of wills, living wills, health and financial powers of
attorney. Ms. Abrams is a graduate of Boston University's School of
Management and the George Washington University School of Law. Ms.
Abrams is rated "AV" by Martindale-Hubbell. More information can be
found at http://www.sheriabrams.comsheri@sheriabrams.com

Tuesday, March 11, 2014

If you're one of the millions of Americans with a criminal
record, you've likely experienced a few hardships as a result. There are
countless difficulties that can arise if your background isn't spotless
and most of those affected have yet to realize the scale of their
disabilities. Below are the top ten reasons to apply for expungement of
your criminal record. Expungement can relieve the burden and restore
hope that has faded with the "life sentence" that can come with mistakes
made long ago.

1. Employment

- Employers often deny jobs to applicants with a criminal background.

- Some states even allow employers to terminate current employees if they are found to have had a conviction

2. Education

- The Higher Education Act of 1998 makes students convicted of drug
related offenses ineligible for any grant, loan or work assistance.

- Having a criminal record may prevent you from attending the
college of your choice or disqualify you from certain graduate programs

Check your criminal record expungement [http://www.shredmyrecord.com] eligibility for Free at [http://www.shredmyrecord.com] You
may reprint this article free of charge in your newsletter, magazine,
or on your website, provided the article is unedited and that the
author's information appears with each article. Articles appearing on
the web must provide an active hyperlink to the author's web site,
ShredMyRecord.com.

Monday, March 10, 2014

Just as we discussed last month regarding Medicaid planning,
there is also a lot of misinformation that exists in the area of estate
planning. Nearly every day someone will tell us for example, that they
heard that if you have a will "there is no probate". Unfortunately, this
type of erroneous information is often passed on as helpful estate
planning advice. Clients frequently learn the hard way that relying on
such advice can cost them thousands of dollars. In an effort to help
educate and prevent others from making these all too common mistakes, we
have complied our list of the top 10 estate planning mistakes.

1. Procrastination.

Most
everyone is at least aware that it is important to have an estate plan.
Far too often however, they procrastinate doing anything about it.
Don't let this happen to you.

2. Not having a will.

The
majority of people do not even have a basic will. A will is essential in
nominating who will be responsible for administering your estate and to
whom your estate will be distributed to after your death.

3. Not Having Powers of Attorney.

Planning
for death is only part of estate planning. In addition to a will, it is
extremely important to have a durable power of attorney for your
finances and a health care power of attorney for medical related
decisions.

4. Failing to recognize a will won't avoid probate.

Assets in a decedent's name only will not avoid probate even if there is a will.

5. Failing to consider a trust.

Too
many people mistakenly believe a trust is only for the wealthy. They
also fail to understand how expensive and time consuming probate can be.
A trust often can save your family time and money if you become
disabled or upon your death.

6. Failing to properly fund a trust.

For
those persons who decide that a trust is right for them, simply signing
the trust is only part of the process of having a trust. Assets such as
a home or other real estate, bank accounts, stocks, bonds, etc., must be re-titled into the name of the trust in order to avoid probate.

7. Doing it yourself.

While
everyone loves to save money, the old adage that you "get what you paid
for" is particularly true in estate planning. If your estate and loved
ones are important to you, it is strongly recommended that you do not
attempt to plan your estate on your own.

8. Putting children's names on assets.

Adding
children's names to bank accounts, real estate or other assets is often
the surest way to create problems after your death.

9. Incorrectly naming beneficiaries.

A
good estate plan must also take into account those assets that have a
beneficiary, such as life insurance, annuity, IRA or 401K. The failure
to correctly name primary and secondary beneficiaries will undermine
even a well drafted will or trust.

10. Failing to periodically review your estate plan.

A
will or trust drafted years ago may not be appropriate today. As
circumstances or laws change, it is recommended that your plan be
reviewed by an elder law attorney.

Brett Howell, the founder of the Elder and Estate Planning Law
Firm, specializes in helping Michigan families protect their estates.
Contact our office for a confidential consultation to discuss your
concerns with Brett - you will be glad (and relieved) you did. Contact
Brett by calling the Elder and Estate Planning Law Firm at (810)
953-3846 or visit his website michiganelderlawyer.com for more information.

Sunday, March 9, 2014

A power of attorney is a legal document that authorizes one
person to act on behalf of another in the legal or business dealings of
the person authorizing the other. This type of document has a lot of
relevance when, for example, somebody needs to execute some business or
legal matter but is unable to do so for whatever reason. In the absence
of the person, another person may be authorized to execute the matter
through use of a power of attorney, which in common law systems or in
civil law systems, authorizes another person to act on behalf of the
person so authorizing the other. The person authorizing is known as the
"principal" and the person authorized is called the "agent". The agent
may, on behalf of the principal, do such lawful acts such as signing the
principal's name on documents.

An agent is a fiduciary for the
principal and, as this is an important relationship between principal
and agent, the law requires that the agent be a person of impeccable
integrity who shall always act honestly and in the best interests of the
principal. In case a contract exists between the agent and the
principal for remuneration or other form of monetary payment being made
to the agent, such contract may be separate and in writing to that
effect. However, the power of attorney may also be verbal, though many
an institution, bank, hospital as well as the Internal Revenue Service
of the USA requires a written power of attorney to be submitted by the
agent before it is honored.

The "Equal Dignity Rule" is the
principle of law that has the same requirements of the agent as it does
to the principal. Suppose that the agent has a power of attorney that
authorizes him or her to sign the sales deed of the principal's house
and that such sales deed should be notarized by law. The power of
attorney does not absolve the agent from the necessity of having the
sales deed notarized. His or her signature to the sales deed must also
be notarized.

There are two types of powers of attorney. One is
the "special power of attorney" and the other, "limited power of
attorney." The power of attorney may be specific to some special
instance or it may be general and encompasses whatever the court
specifies to be its scope. The document will lapse when the grantor
(principal) dies. In case the principal should become incapacitated due
to some physical or mental illness, his power of attorney will be
revoked, under the common law. There is an exception. In case the
principal had in the document specifically stated that the agent may
continue to act on his behalf even if the principal became
incapacitated, then the power of attorney would continue to enjoy legal
sanction.

In some of the States in the USA, there is a "springing
power of attorney" which kicks in only in case the grantor (principal)
becomes incapacitated or some future act or circumstance occurs. Unless
the agreement has been made irrevocable, the agreement may be revoked by
the principal by informing the agent that he is revoking the power of
attorney.

Making use of standardized power of attorney forms helps
in framing a legally sound and mutually beneficial relationship for
principal and agent. With the ease of use and ready availability of such
forms, it is highly recommended that they be utilized when thinking of
granting a power of attorney to someone. However, care should be taken
not to let unscrupulous persons defraud innocent persons such as the
elderly through ill-conceived agreements.

Saturday, March 8, 2014

You
may be asking yourself whether you can really afford to do the
effective estate planning that you know needs to be done. That's not the
question to ask. The real question is whether you and your family can
afford to be without the protection and security that the right planning
provides.

Would you drive without car insurance? How would you feel without the protection that liability and property coverage offers??

Would you leave your home uninsured?

Would you go without health insurance, knowing that any major medical bills could wipe you out?
In
the case of the car, home, and health insurance, you're protecting
against the possibility of something happening. If an insured event
occurs, then your insurance will cover you, and the premiums you paid
for the insurance will be more than worth it.

Estate planning is
protecting against the possibility that you might become incapacitated
during your lifetime, and the certainty that you will pass away one day.

So what protection and security does the right kind of planning provide?Protecting You if You Become Incapacitated.
If you become incapacitated and need help managing your financial
affairs and your medical care, the people you want helping you will need
the proper legal documents in order to have the authority to act for
you.Protecting Your Loved Ones. The right kind of estate planning will protect your loved ones from any of the following:

Creditors - whether they have creditor problems now, or some that arise in the future.

Predators - people who would take advantage of them after they receive an inheritance from you.

Loss of Benefits - if you have a loved one with Special Needs, then having the right plan will protect their continuing benefits.

Family Feuds - Unfortunately, when your planning is
not done correctly, horrible feuds can arise between family members,
even among siblings who previously got along.

Divorce Loss - if one of your loved ones got
divorced, would you want their ex-spouse to receive half of their
inheritance? Without proper planning, that can happen.

Blended Families - in families where there are
children from other marriages, then the right estate planning will
protect against one side of the family being inadvertently disinherited.

Protecting Your Assets. The right
planning will protect your assets from unnecessary expenses, and the
potential for loss from creditors or a nursing home spend-down.

Probate Expense - If your estate goes through
Probate, then your family will pay a much higher cost to administer your
estate. The attorney fee to pay in Probate is calculated as a
percentage of your assets, starting as high as 4.5%. For example, in
Lucas County, the attorney fee for probating a $400,000 estate (gross
value) would be $15,000. With the right planning, that cost could be
significantly reduced, resulting in savings of up to $11,000!

Creditors or Long Term Care Spend Down. If you're
concerned about the potential for losing your savings to a nursing home,
and if long term care insurance is not an option for you, then the
right kind of estate planning can help protect a large portion of your
assets and preserve them for your loved ones.

Whether or not your current estate planning is
appropriate for your current needs and goals is something you need to be
concerned about. In our office, we offer a no-cost and no-obligation
initial consultation. We meet with you to determine whether your current
planning is appropriate for your needs and goals, and make
recommendations for any changes that may be required.

Call our office to schedule an appointment with one of our estate planning attorneys, or visit our website (http://www.chamberlain-law.net) to learn more about our services and how effective estate planning can benefit you and your loved ones.

Friday, March 7, 2014

Probate law is a legal process that no one ever wants to deal
with. When someone who has a valid will passes away an administrative
process goes into effect which determines how the individual's property
and belongings (termed their estate) will be handled. The process of
this is great to know as both the person who is writing the will and the
people who will be involved in the process should the unthinkable
happen so that everything is understood and further pain is avoided.
Estate planning is a lot better than no estate planning at all where
motives have historically been influenced by relationships between
friends and family and the value of the estate.

What is probate?

The
term probate can be used in a variety of related ways. However the most
common context is known as the process that occurs within the legal
system administering your estate after someone has deceased. Each person
listed on the will, must apply for a grant of Probate.

What if I have no will?

The
Probate Law will only take effect when a valid will has been written by
the deceased person. If the deceased does not have a recognized will,
then the probate is invalid and an administrator needs to be made
official (generally the next of kin). This process can be complicated
and takes a lot longer than if a will was written.

What is included in an estate?

The
probate lawfully considers an estate to be all assets that are owned
fully or partially by the deceased. This includes future pay checks from
work before passing, household goods, property and anything else that
ownership can be determined by various forms of legal documents. All of
the above can be probated by a local Probate Council except for real
estate. Probate law for real estate is under the jurisdiction that the
property is located. If someone wants to contest the ownership of any
part of the estate, they must go through the appropriate legal channels.

Getting the process started?

If
someone has deceased, their will is not official until it has been
submitted for probate. Therefore when estate planning, you will need to
tell someone where they can locate your will if required. Although there
are some parts of the probate court procedures that are informal, there
are severe penalties if the will is not produced within a certain time,
is concealed or destroyed.

Estate planning is not enjoyable to
think about. However, by doing so you do make things clearer for those
who are mentioned in your will. The probate law may seem like a nuisance
given the circumstances that the law is applied however is required
though to keep everyone in check. It also simplifies the process as
there have been situations where assets of the deceased are fought over
for years resulting in ongoing pain for all parties involved.
Ultimately, who do you want to go through your underwear draw?

Thursday, March 6, 2014

Having a DUI arrest or conviction record can tarnish your
reputation and make it difficult for you to get a job, loan, college,
military etc. Fortunately, California State allows you to expunge your
DUI record thereby, helping you to leave behind your past crimes and
move on with your life. However to obtain DUI expungement in California
you must meet certain requirements. Also, your expungement is not
guaranteed even after it's ordered.

Can your case be expunged?

Under California law, your case can be expunged if you meet the following requirements:

1. if you fulfilled the conditions of probation.

2. if you are not presently serving a sentence or on probation for any other crime.

3. if you are not presently charged for any other crime.

Also
other factors are considered before granting an expungement such as
whether you are a minor or an adult at the time of your conviction,
whether you are charged for misdemeanor or felony, and whether or not
you were sentenced to a state prison. If you meet such requirements your
case will be expunged.

What happens when the expungement is granted?

Under
California law, expunging means withdrawal of plea of guilty or no
contest and entering a plea of not guilty or setting aside the judgment
if you are found guilty in the trial. Once granted, you are thereafter,
relieved from all the consequences resulting from a DUI violation,
though with some exceptions.

Your life after expunging DUI record:

Job Applications:

As
per the California law, when applying for a private job you can firmly
answer "no" to the question "have you ever been convicted of a crime?"
in the application form. Also, your DUI record will not show up when
conducting a background check.

But expungement does not serve its
purpose when you apply for a government job. Your DUI convictions will
be revealed as expunged. It's not very helpful though. Also, your
expunged records are seen as a prior conviction, meaning, it can be used
for enhancing the penalties of your future DUI conviction in case you
commit any.

Expunge your DUI record "completely" with the help of DUI Process
Manual. It offers little-known strategies to clear your DUI record
completely and pass employment background checks in a step-by-step
approach. Visit my site for free DUI strategies report and DUI Process
Manual review and take action to clear DUI record
[http://www.dui-process.org/dui-process-manual-review/].

Wednesday, March 5, 2014

When there are minor children, a Will should always be used to name a guardian(s) of their persons and property.
This guardian is who will be taking care of them in your absence and
will also have control over their finances, both from you and for their
well being. This guardian that you appoint, needless to say, is someone
that you must be able to trust completely with your children and someone
who will make sure that they are cared for in the way that you have
planned. This person "can" of course be someone other than your X.

Alternate
guardians should also be named in the event that the original guardian
is for whatever reason unable to assume responsibility. Naming of
guardians and alternates should not be done any other way but in a Will.
This will relieve any hint of confusion after you are not able to take
care of your kids yourself. Of course, if there is a surviving parent
that person will be automatically named guardian if living in the same
household; but, if your will specifies a different person to control the
money, then this can fit your goals quite nicely.

This situation
can and often gets tricky in divorce cases. Since you are divorced, the
parent with legal custody of the child(ren) should designate a guardian.
If you are the legal guardian, then you have the authority to designate
who will care for your children after you die. Understand, however, that if somebody besides the other biological parent is named, this decision might not be binding.

When
a custodial parent dies, the non-custodial parent always has priority
in seeking guardianship and custody, unless that person is deemed unfit
to perform the duties necessary or is unsafe to leave with children. If
you are set against your "X" getting custody of your children if you
were to die, you need to make sure that you or your appointed guardian
will be able to prove that your "X" is unfit or unable to perform the
job.

However, be aware that the court will probably have
to approve who you have proposed to be the legal guardian eventually
even if named in your Will. The purpose of your Will in this
regard, though, is to guide the court in its judgment. It will also help
avoid family arguments over who is better qualified to raise your
children and will give the person you choose the authority over all
others.

Dennis Gac is widely known as "The World's premier fathers rights
Consultant!" But why would you care? Well, I'll tell you if you rush
over to his site... I think you'll come to your own conclusion that he
"IS" the real deal! Experience someone who works and thinks outside the
box for you! Read what others have to say at http://www.fathershelphotline.com.

Tuesday, March 4, 2014

Estate: Essentially includes everything you own.
This includes life insurance, business interests, personal property,
real estate and retirement plans. The "value" of your estate is
determined by the "fair market value" of the assets.

Probate: The
public, court controlled, legal process for changing title to assets
for people who have died. Since deceased persons are legally incapable
of transferring property, the probate court provides the process for
transferring a decedent's property. Owning property in more than one
state will require multiple probates.

Will: A
legal document that advises the probate court about a decedent's wishes
for distribution of their assets. A will is only effective after the
person's death.

Will Substitutes: Certain forms
of ownership that transfer property automatically on death. The most
common will substitutes are beneficiary designations and joint tenancy.
Will substitutes can cause unforeseen results and consequences.

Trust: A
legal document that provides instructions to a personal trustee on how
to manage and distribute the estate. A Living Trust is established
during the person's lifetime and is usually revocable and amendable. A
properly funded trust avoids probate and can provide instructions for
management of the estate in the event of death or incapacity. A
Testamentary Trust is established as a part of a will, but like a will,
is only effective on death and must also be probated. Special kinds of
trusts can be used to provide for disabled children or grandchildren,
called a special needs trust. Also, certain irrevocable trusts can help
protect assets from nursing home expenses.

When you create a trust, you (Trustmaker) transfer your property into the name of the trust, to be managed by you or someone else that you choose (Trustee) for the benefit of yourself or someone else (Beneficiary). In a Living Trust you are generally the Trustmaker, Trustee and Beneficiary
so that you retain total management and control over your assets.
However, at the time of your death, if the trust is then the owner of
everything in the estate, there is nothing to probate and that process
is avoided. Your Successor Trustee simply follows your instructions for
further managing and distributing your estate. A revocable Living Trust
does not require any special or additional tax filings, and can
generally be revoked or amended at any time.

Guardianship: A
guardianship is a legal relationship in which the probate court gives a
person (the guardian) the power to make personal decisions (i.e.
medical decisions) for another (the incapacitated person). If the judge
determines that the person does not have the mental capacity to care for
his or her own needs, the judge will appoint a guardian. Unless limited
by the court, the guardian generally has the same rights, powers and
duties over the person that parents have over their minor children.

Conservatorship: A
conservatorship is a legal relationship in which the probate court
gives a person (the conservator) the power to make financial decisions
for another (the protected person). The court proceedings are similar to
those of a guardianship except the judge is determining whether the
individual has the capacity to manage his or her financial affairs. If
the individual is determined not to have the necessary mental capacity,
the court will appoint a conservator to make financial decisions for the
individual. Once appointed, the conservator must file an accounting
each year documenting all of the income and expenses generated on behalf
of the protected person.

Brett Howell, the founder of the Elder and Estate Planning Law
Firm, specializes in helping Michigan families protect their estates.
Contact our office for a confidential consultation to discuss your
concerns with Brett - you will be glad (and relieved) you did. Contact
Brett by calling the Elder and Estate Planning Law Firm at (810)
953-3846 or visit his website http://www.michiganelderlawyer.com for more information.

Sunday, March 2, 2014

It is a universal fact that persistent hard work and some timely
luck is needed to be successful in any business venture. However, when
it comes to forming a corporate entity for your business, a little
homework is all that is required to help make an informed decision which
could lead to the continued success of your business.

While it is
correct for business owners to give premeditated thought as to their
venture's location, customer service, human resources and other
management issues, it is equally important that the owner consider the
corporate structure of the business as well.

Many business owners
don't consider this, but the corporate structure that is chosen can
often times be the difference between the venture's success or failure,
especially in today's highly competitive and litigious marketplace. Most
often, entrepreneurs select the corporation as their preferred entity
choice, which encompasses several unique benefits.

Incorporating,
while definitely not for everybody, offers several distinct and
money-saving advantages over other types of legal entities. Here are
eight advantages of incorporation:

1. Protection of Personal Assets
If you operate as a sole proprietor or partnership, there is
virtually unlimited personal liability for business debts or lawsuits.
In other words, should you go out of business or be a defendant in a
lawsuit, your personal assets such as homes, jewelry, vehicles, savings,
etc. are subject to seizure. This is generally NOT the case of
incorporation. When you incorporate you are only responsible for your
initial investment in the corporation; as such, this limited liability
feature of a corporation, while not a guarantee, is DEFINITELY one of
the most attractive reasons of incorporation.

2. Transferable Ownership
Corporations are generally much easier to sell and are usually more
attractive to buyers than either a sole proprietorship or partnership.
The reason for this is because a new buyer will not be personally liable
for any wrongful acts committed by the previous owners. For example, if
someone buys a sole proprietorship, the new owner can be held
personally liable for any mistakes or illegalities on the part of the
prior owner... even if the new owner had NOTHING to do with the
situation! This is usually NOT the case with a corporation.

3. Taxation
When you incorporate a business, there are numerous tax advantages
at your disposal that are virtually impossible to accomplish with other
business entities. When a business is incorporated, a separate and
distinct legal entity is created. Because of this, there are various
transactions that can be structured within the corporate parameters of
the business that will save big money on taxes. For instance, if you own
a building, you can rent office facilities to your corporation and
claim depreciation and other deductions for it. Your corporation can
then claim the rental expense. You are prohibited from doing this if you
are a sole proprietor or a partner in a partnership.

4. Privacy and Confidentiality
Incorporating your business is a great way to keep your identity and
business affairs private and confidential. If you want to start a
business, but would like to remain anonymous, forming a corporation is
the best way to accomplish this. Moreover, some states such as Nevada
offer even more privacy protection for corporations and their
shareholders.

5. Easier to Raise Capital
When you're looking to raise money through investment or borrowing, a
corporation can actually make finding and getting the money you need
easier. If you want to take on investors, you simply sell shares of
stock. If you want to borrow, a corporation can add clout when dealing
with banks or other lending institutions.

6. Perpetuity
As mentioned in #3, when you incorporate a business, you create a
separate and distinct legal entity. This separate and distinct entity
(the corporation) will exist in perpetuity irrespective of what happens
to the shareholders, directors, or officers. This is NOT the case with
sole proprietorships, partnerships or even limited liability companies.
For example, if an owner, partner, or member dies, the business
AUTOMATICALLY ends or gets wrapped up in the legal dissolution process.
Corporations, on the other hand, exist forever.

7. Retirement funds
Retirement funds and qualified retirement plans, such as a 401k, may be established more easily.

8. Credit Rating
Regardless of an owner's personal credit scores, a corporation can
acquire its own credit rating, and build a separate credit history by
applying for and using corporate credit.

Yusoff Allian is a legal expert on the formation of
C-corporations, LLCs, and LLPs. To learn more about the advantages of
incorporation, visit http://www.ofincorporation.com.

Saturday, March 1, 2014

Are BY THE PEOPLE Personnel attorneys? No, we are not attorneys. We are Legal Document Assistants. In California, we are a licensed and bonded profession.

What if I need legal advise?
You can always consult with an attorney of your choice. We can provide
you with a referral for an excellent local attorney who specializes in
cases similar to yours if you have questions we cannot answer for you,
or your situation is more complicated than our services are meant to
help with.

Do you have a Notary Public?
Yes, whenever we are open we have a Notary Public on staff. If you are
a BY THE PEOPLE customer, all Notarizations of your documents are
included in our fees. If you have documents not prepared by BY THE
PEOPLE, we charge $10.00 per signature you need notarized, in Cash Only.
You must sign the document in our presence and provide valid photo
identification.

Does BY THE PEOPLE handle Criminal Matters?
No, we only handle uncontested civil matters. However, if you would
like to contact us, we may be able to refer an excellent local attorney
to you.

I need to have my documents prepared immediately. Do you have Rush or Same-Day document preparation services?
Yes, we can prepare certain documents within a few hours, if necessary.
Rush and Same-Day services are available for the following documents:
Wills, Powers of Attorney, Health Care Directives, Deeds, LLC and
Incorporation Articles. A modest Rush Fees will apply to these services.

How long will it take to prepare my documents?
The documents we prepare at BY THE PEOPLE are typed specifically at
your direction. All documents are then rigorously proofed to ensure you
receive the highest quality legal documents available anywhere. Most of
our documents are prepared and ready for you to sign within one week,
depending on your situation.